Home Minister G. Parameshwara announced that the Central Bureau of Investigation (CBI) is investigating the multi-crore illegal diversion of funds in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd. Union Bank of India flagged the embezzlement, leading to CBI involvement. The state government awaits formal request from the CBI to extend cooperation. Jurisdiction issues between CBI and state departments are under scrutiny. The SIT arrested a cooperative society chairman, following prior arrests related to fund misappropriation. The incident has led to demands for the dismissal of the Scheduled Tribes Welfare Minister.